Family security prime motivator for HNWI

Financial security for the family is the top concern of ultra high net worth individuals, according to advisers.

This comes top of any other concern including good causes, ethical or environmental concerns, according to the latest investor research from Switzerland-based specialist private banking and trust company Kaiser Partner. The research draws upon the experience and insight of some 60 advisers and other experts with international clients.

The findings of the survey also predict that financial centres of the future will be led by Singapore and Hong Kong, and at some time in the future, Shanghai. Alongside Switzerland and the Channel Islands, advisers named Liechtenstein as an up-and-coming centre, as a result of its recent effort to remake itself. Kaiser Partner says the principality’s restored reputation is in part as a result of its recent agreement with HMRC.

The firm says that the Liechtenstein Disclosure Facility (LDF) agreement has created “a unique process for declaring as yet untaxed assets. As clients of a Liechtenstein financial institution, UK taxpayers can now use this process to regularise their tax affairs – often on advantageous terms. This solution has transformed the conduct of business for clients and companies using Liechtenstein solutions.”

Kaiser’s survey found that just 13% of respondents believed banking confidentiality was "more important" to them when selecting a jurisdiction for their HNWI clients, compared to five years ago. But as many as 45% confirmed confidentiality was less important when compared to a jurisdiction's economic stability.